The law firm of Riser Askisson, LLP published several years ago an authoritative article on the truth about the taxation of charging orders held by judgment creditors.  The article, titled Tax Consequences of Charging Orders:  Is the K.O. by the K-1 K.O.'d by the Code?, originally appeared in the Winter 1999 edition of the Asset Protection Journal.  The author, Christopher M. Riser, J.D., LL.M., refutes a commonly-held notion that creditors who obtain a charging order against the ownership interest of a debtor's LLC or limited partnership are also responsible for the tax liabilities of that interest.  The popular theory debunked in this article goes on to imply that since the tax liability flows to the creditor, and the creditor has no control over whether or not profits are actually distributed, then the creditor will have to pay the taxes associated with charging order out of pocket.

An example of this theory being promoted can be found here.   Note the last sentence of the second paragraph.  (That is, until they change it when they realize that they are getting traffic from this post.)